China: Caixin’s manufacturing index improved in May

Factory activity in China shrank in May as restrictions on smallpox eased and production resumed, according to a private sector survey, showing an improvement from a 26-month low in April.

Caixin manufacturing PMI rose to 48.1 points in May from 46 the previous month, against estimates for 48 points.

The May contraction was the second-largest decline since February 2020, indicating that the recovery remains fragile.

The companies surveyed linked the drop in production to the impact of pandemic-related restrictions on activities and sluggish customer demand.

The index for new orders decreased for the third consecutive month in May, but at a slower pace.

The index for new export orders also shrank less, but remained in recession for the 10th consecutive month.